Oilman Jim

88 Energy (88E) announced an operations update reporting good progress on the Project Peregrine farm-out with a deal on schedule for year-end close.   Permitting and planning for a two well program at Project Peregrine is on track for 1Q 2021 spud.   The quarterly report issued later in the week disclosed cash of A$4,681,000 (£2,535,000) as of 30 September 2020 and clearly 88E will need more.   A placing is a virtual certainty, but after that we may well see another 100% run as happened following the fundraising last year. Bahamas Petroleum Company (BPC) announced a convertible note funding update.   As suspected, it remains far from certain.   The initial exploration well was of course “fully funded per the established criteria” the previous week when it came to paying out salaries and bonuses to directors, but now an element of doubt is creeping in.   Caution is the watchword here. Providence Resources (PVR) and Lansdowne Oil & Gas (LOGP) announce...

Aminex (AEX) announced receipt of approval from the Tanzanian Government for the transfer of a 50% interest in, and operatorship of, the Ruvuma PSA to ARA Petroleum.   As regular readers know, I said this was more likely than not to happen.   ARA certainly believed it to be the case, since they advanced $5 million to AEX over the past 12 months.   The Aminex share price has more than trebled.   It’s good news too for Solo Oil (SOLO) , who hold a 25% interest in Ruyuma, which they are aiming to sell.   AEX retains a 25% carried interest. Pantheon Resources (PANR) announced upgraded management resource estimates for Kuparuk.   This an oil bearing formation at the Talitha project and PANR itself estimates this horizon to contain 1.4 billion barrels of oil in place and a prospective recoverable resource of 341 million barrels of oil as “a most likely case.”   Some are dubious and question this company’s near quarter of a billion pounds market capitalisat...

Union Jack Oil (UJO) and Reabold Resources (RBD) announced commencement of drilling of the West Newton B-1 well.   Completion is expected to take six to ten weeks.   The steam has very much gone out of the UJO share price since it fell by nearly half from 0.31p before the 0.16p placing (I was talking in the private blog about de-risking in the high 0.2s/low 0.3s).   RBD also is weak.   Romanian operations appear to have failed and investor confidence has ebbed away.   Regular readers know that I’ve warned about Reabold many times and at much higher prices than today.   If you want to gamble (and that’s all it is) on the outcome of the drill, Union Jack probably is the better bet.   RBD owns a greater percentage, but UJO has the audience needed. Predator Oil & Gas (PRD) announced an operational update.   Reassuringly, it confirms that Morocco is the “greatest potential risk/reward prize in the Company's portfolio and is an absolute priority ...

As expected, UK Oil & Gas (UKOG) announced its placing.   £2.2 million at 0.16p “funding initial Turkey operations.”   How well this sits with its stated aim of “increased energy security for this country” is a matter for the company’s shareholders, most of whom bought in precisely because of that objective.   It’s not really that clever a move.   Of course, it might never happen and as they state further down the RNS, “in the unexpected event that the PA and JOA are not entered into, the company will deploy the proceeds of the placing for working capital” (i.e. directors' salaries). Bahamas Petroleum Company (BPC) announced a £9.5 million placing at 2p.   Unfortunately, the eight figure balance required to fund the Perseverance #1 drill will have to come from convertible loan note financing, which is usually the kiss of death for a company’s share price.   Most likely there will be trading opportunities along the way, but holding for the well result ...